Global banking and financial services company HSBC Holdings has infused $441 million into its China division boosting the latter’s registered capital to $1.7 billion, Reuters reports. This is the first time a foreign bank has been permitted to add new capital using the local currency yuan, as per the bank’s Chinese unit HSBC Bank (China) Co.
The capital injection underlines the significance of China for U.K.-based HSBC because it comes at a time when the bank is restructuring and slashing jobs elsewhere. Europe’s largest bank intends to cut 30,000 jobs by the close of 2013 as part of a restructuring aimed at reducing yearly costs by $3.5 billion.
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